| Author: |
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Debbie |
| Date: |
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September 26, 2002 |
| Question: |
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I'm considering bankruptcy. I have a mortgage on my home, it is appox. $153,859.00. The tax assessment for our home is at $201,000.00 due to a business we have. The bank has put two leins on the house, one for $50,000 and the other for $70,000. If myself and my husband went bankrupt would we lose our home? This is my children's home too. Would we be allowed to keep our home?
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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September 26, 2002 |
| Answer: |
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Under Alberta law you are allowed to keep $40,000 equity in a personal residence (the difference between what the house is worth and what you owe on it.) If the equity value is more than $40,000 the Trustee must recover the amount over from you, usually by way of payments. You must also keep paying on the mortgage. The question I cannot answer without seeing the house title or documents from the bank, is whether or not the bank liens are dischargable in a bankruptcy. I'd suggest you meet with a Trustee about your situation.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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